Unfair Trading Practices report by European Commission labelled a ‘missed opportunity’ by campaigners

The European Commission’s report “Unfair Business-To-Business Trading Practices (UTPs) in the Food Supply Chain” was published on 29 January. But the Brussels-based Fair Trade Advocacy Office and UK Fair Trade organisation Traidcraft claimed that the Commission has missed the opportunity to take the lead in stopping abusive business practices, which impact on many hardworking farmers, workers and businesses in Europe and beyond. Instead, the Commission has passed responsibility to a voluntary initiative set up by the private sector and to EU Member States.

Sergi Corbalán, Executive Director of Fair Trade Advocacy Office said: “Across Europe we have seen food sales concentrated into fewer and fewer hands. Retailers operating in several EU Member States have centralised their sourcing, which limits the ability of national enforcement authorities to tackle Unfair Trading Practices in their jurisdiction. We call on the Commission to set up cooperation structures to promote the exchange of information and joint investigations by EU Member States. All farmers supplying the European market should be able to make complaints anonymously, regardless of which country they are based in, outside or inside the EU”.

Inaction by the European Commission leaves suppliers exposed to unfair trading practices (UTPs) that include late payments, unilateral changes to contracts and the unfair shifting of risk onto suppliers. Research shows that when supermarkets dump risk onto their suppliers in the form of delayed payments or additional costs, these risks are often passed on down the supply chain.

Anti-food waste campaigners, Feedback, released a statement pointing out that inaction by the European Commission leaves suppliers exposed to unfair trading practices that include late payments, unilateral changes to contracts and the unfair shifting of risk onto suppliers.

Feedback’s own investigations in countries like Kenya, Guatemala and Peru have uncovered how unfair trading practices practiced by retailers and their direct suppliers often have significant impacts on farmers in the Global South. When orders are cancelled at the last minute, or supply agreements are varied retrospectively farmers are often left with no market to sell their food to. Instead much of the food is wasted, and the farmers don’t get paid. Unfair trading practices like this are making it increasingly difficult for farmers to invest in their businesses as many are pushed into cycles of debt just so that they can pay their workers.

Read Feedback’s full statement here.